The spread of the coronavirus continues to keep its grip on global markets to end the week, although base metals have held their ground relatively well, all things considered, in the opinion of analysts at TD Securities.
Key quotes
“The combination of fiscal stimulus and monetary stimulus in China to temper the virus’ effect, along with the growth in new cases now taking place outside of China, suggest the worst may be behind the Middle Kingdom and offers base metals a semblance of support.”
“The renewed weakness in markets has seen CTAs turn sellers in copper, although the selling program is coming to a close, while it is also important to note that funds in our China Smart Money Index remain comfortably long the red metal. Meanwhile, systematic trend followers are set to add more meaningful downside flow in lead should prices close the week below $1828/t.”
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